Pharmaceutical Product Development (Nasdaq: PPDI) beat Wall Street expectations with its second-quarter earnings report, but its shares sold down more than 7 percent at one point Wednesday.

An afternoon rally cut the losses to just over 5 percent. PPDI closed at $38.77, down $2.18.

Apparently dismayed with PPD’s new business forecast and cancellations in contracts, shareholders send PPD down $3.02 to $37.93 in late-afternoon trading. PPD forecast a 16.7 percent growth in bookings for the next quarter and said cancellations topped 26 percent.

After the markets closed Tuesday, PPD reporting revenues of $407 million, which beat analysts’ expectations of $374 million when polled by Thomson Reuters.

PPD also reported profits of $70.7, or 41 cents per share. Analysts had expected a 39 cents-per-share profit. Earnings were up from $61.1 million in the same quarter for 207. Revenues jumped more than 16 percent from $350 million.

"I am very pleased with our financial and operating performance for the quarter," said Fred Eshelman, PPD’s founder and chief executive officer.

"We believe the market for CRO services is strong, even though our new authorizations came in lower than expected for the quarter,” he added. “Request-for-proposal volume remains high, and we will continue to focus our efforts on operational excellence and sales execution."